INTEREST RATES AND CURRENCIES: Uneven interest rates on government bonds

In the interest rate market, interest rates had partly turned upwards after yesterday’s decline.

At the time of the review, the interest rate on the US ten-year government bond was 4.2 percentage points higher at 3.791 percent. The interest rate on the two-year government bond was 1.7 percentage points higher at 3.603 percent.

The interest rate on Germany’s ten-year government bond was 2.3 percentage points higher at 2.177 percent. The interest rate on the two-year government bond was 1.4 percentage points lower at 2.130 percent.

In Germany, the reading of the Ifo index for September was 84.4, while Bloomberg’s the consensus of economists collected predicts a reading of 86. In August, the index was reading 86.4.

Reuters said on Tuesday afternoon that German economic institutes are lowering their forecast for 2024. Europe’s largest economy is now expected to contract by 0.1 percent, Reuters sources say.

Economic institutes predict that the growth forecast for 2025 will now be 0.8 percent, while previously it was 1.4 percent. A growth of 1.3 percent is predicted for 2026.

The institute plans to publish the exact figures on Thursday of this week.

In particular, the two-year interest rate on the German government bond squatted between 1 and 2 p.m., but soon returned to the upward trend.

Up-to-date information on the development of consumer confidence in the United States is published from five. The consensus of Bloomberg economists predicts that consumer confidence will rise to 104.0 in September from 103.3 the previous month.

China’s central bank announced stimulus measures in an effort to meet this year’s economic growth target and prevent a selloff in the stock market.

“China plans at least 800 billion yuan of liquidity support for stocks and will allow brokers and funds to use central bank financing to buy stocks after the CSI 300 index fell to a more than five-year low earlier this month,” Bloomberg’s review revealed.

This is part of a broad policy package to stimulate the economy, including lowering interest rates and reducing borrowing costs.

On the raw material market, the price of oil was on the rise on Tuesday.

“The crude oil market has been desperately waiting for easing measures by the Chinese administration against the weakening economy,” says a market analyst Tony Sycamore for Reuters.

China is one of the biggest importers of oil.

At the time of the review, the prices of the largest oil grades were increasing by more than 2 percent.

At 3:10 p.m., one euro was worth 1.11 dollars, 160.12 yen, 0.83 pounds and 11.29 Swedish kronor. The dollar was 143.84 yen and the pound was 1.34 dollars.